Comstock Resources Inc (CRK)

Interest coverage

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	415,230	893,635	1,331,482	1,882,079	1,573,035	1,426,689	712,514	-8,111	-11,837	-320,694	-215,043	-33,308	173,202	110,090	280,468	346,802	286,233	258,451	229,406	178,417
Interest expense (ttm)	US$ in thousands	169,018	159,970	157,739	162,871	171,092	180,044	188,605	201,165	218,485	236,710	250,646	245,830	234,829	222,871	209,996	186,500	161,541	136,192	100,022	111,667
Interest coverage		2.46	5.59	8.44	11.56	9.19	7.92	3.78	-0.04	-0.05	-1.35	-0.86	-0.14	0.74	0.49	1.34	1.86	1.77	1.90	2.29	1.60

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $415,230K ÷ $169,018K
= 2.46

Comstock Resources, Inc.'s interest coverage ratio has demonstrated fluctuations over the past eight quarters. In Q4 2023, the interest coverage was 1.34, indicating the company's ability to meet its interest obligations was relatively low. This was a significant decrease compared to the previous quarter where the ratio was 4.38. However, in Q3 2023, Q2 2023, and Q1 2023, the interest coverage ratios were 9.03, 12.83, and 13.33, respectively, illustrating a strong ability to cover interest expenses.

Looking back further, in Q4 2022, the interest coverage ratio was 13.33, indicating a high capacity to pay interest costs. This trend continued in Q3 2022 and Q2 2022 with ratios of 12.32 and 9.24, respectively. The lowest ratio during this period was in Q1 2022 at 6.16, suggesting a decrease in the ability to cover interest expenses compared to the following quarters.

Overall, Comstock Resources, Inc.'s interest coverage ratio has shown fluctuations, with some quarters demonstrating stronger ability to cover interest payments compared to others. It is essential for stakeholders to monitor this ratio closely to assess the company's financial health and risk.